iRhythm (Nasdaq: IRTC) announced today that it will acquire wearable biosensor and ambulatory cardiac monitoring tech company VitalConnect.
The news, along with Street-beating second-quarter results, sent IRTC shares up more than 2% to $130.75 apiece in after-hours trading.
iRhythm (San Francisco) said the size of the acquisition is $287.5 million — $237.5 million in cash from iRhythm’s balance sheet and roughly $50 million in iRhythm common stock. Company officials say the deal will expand the heart-monitoring wearable company’s offerings — presently centered on Zio-branded wearables — to encompass a broader cardiac-monitoring and intelligence platform. VitalConnect has an FDA-cleared platform for healthcare and remote care settings that spans multiple cardiac monitoring modalities and multi-vitals monitoring capabilities.
The deal is expected to close at the end of the year, subject to regulatory and other customary closing conditions, with the deal accretive to iRhythm’s revenue growth rate beginning in 2027.
“This combination represents a significant next step in iRhythm’s evolution from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform,” iRhythm CEO Quentin Blackford said in a news release. “VitalConnect adds complementary mobile cardiac telemetry (MCT), multi-vitals and hospital monitoring capabilities that complement Zio and meaningfully expand the categories of patients and customers we can serve. By bringing these capabilities onto iRhythm’s commercial platform, we believe we can accelerate our growth, deepen customer partnerships and reach more patients across the continuum of care.”
Ambulatory cardiac monitoring is not a one-size-fits-all situation, according to Dr Mintu Turakhia, chief medical and scientific officer and EVP of advanced technologies at iRhythm.
Said Turakhia: “Clinical needs, physician workflows, care settings and patient preferences vary, and no single monitoring model is optimal for every use case. VitalConnect complements Zio’s differentiated, uninterrupted monitoring experience by adding flexibility and additional capabilities across a broader range of clinical settings. Together, our platforms will offer clinicians greater choice while maintaining a shared focus on high-quality data and clinically actionable information, while creating synergy for future innovation.”
A Street-beating second quarter for iRhythm
For the quarter ended June 30, 2026, iRhythm lost $381,000, or a penny per share, off of $224.2 million in revenue — versus a much larger loss of $14.2 million, or 44¢ per share, on $186.7 million in revenue a year before.
Adjusted to exclude one-time items, iRhythm’s EPS was 58¢, which was 58¢ ahead of the $0 EPS and $219.3 million in revenue that Wall Street analysts on average expected.
For the full year 2026, iRhythm expects revenue between $880 million and $890 million and adjusted EBITDA margin between 13% and 14%
“Our second quarter results reflect strong execution across the business, with broad-based growth, meaningful margin expansion, and continued progress against our strategic priorities,” Blackford said. “We are driving adoption across an increasingly diverse set of care settings and channels, including primary care, while continuing to invest in the capabilities that we believe will shape the future of healthcare.”
